Making More Money The New Fashioned Way

Making More Money The New Fashioned Way

There’s a funny article on The Verge about a pizzeria owner making money by buying his own $24 pizzas from DoorDash for $16. Considering that NYC just passed some laws limiting what third-party delivery services (see: Ordering Food by Phone? Check the Number), this is kind of a strange twist.

One of the most common strategies for tech companies focused on growth is to over-incentivize both consumers and businesses until they have achieved their growth goals. This is extremely costly (and not always a winning strategy), but for companies like DoorDash, there are few choices. Win or die. It’s kind of binary.

The result? A restaurant can order its own pizzas for $16 and get an $8 commission check from DoorDash. Not sustainable, but an interesting way to increase your pizza profits in a time where every pepperoni counts!

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it.

About Shelly Palmer

Shelly Palmer is a business advisor and technology consultant. He helps Fortune 500 companies with digital transformation, media and marketing. Named LinkedIn's Top Voice in Technology, he is the co-host of "Think About This with Shelly Palmer & Ross Martin." He covers tech and business for Good Day New York, writes a weekly column for Adweek, is a regular commentator on CNN and CNBC, and writes a popular daily business blog. Follow @shellypalmer or visit shellypalmer.com

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